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 West Bank (2008)West Bank (2007)
 West BankWest Bank
Background The September 1993 Israel-PLO Declaration of Principles on Interim Self-Government Arrangements provided for a transitional period of Palestinian self-rule in the West Bank and Gaza Strip. Under a series of agreements signed between May 1994 and September 1999, Israel transferred to the Palestinian Authority (PA) security and civilian responsibility for Palestinian-populated areas of the West Bank and Gaza. Negotiations to determine the permanent status of the West Bank and Gaza stalled following the outbreak of an intifada in September 2000, as Israeli forces reoccupied most Palestinian-controlled areas. In April 2003, the Quartet (US, EU, UN, and Russia) presented a roadmap to a final settlement of the conflict by 2005 based on reciprocal steps by the two parties leading to two states, Israel and a democratic Palestine. The proposed date for a permanent status agreement was postponed indefinitely due to violence and accusations that both sides had not followed through on their commitments. Following Palestinian leader Yasir ARAFAT's death in late 2004, Mahmud ABBAS was elected PA president in January 2005. A month later, Israel and the PA agreed to the Sharm el-Sheikh Commitments in an effort to move the peace process forward. In September 2005, Israel unilaterally withdrew all its settlers and soldiers and dismantled its military facilities in the Gaza Strip and withdrew settlers and redeployed soldiers from four small northern West Bank settlements. Nonetheless, Israel controls maritime, airspace, and most access to the Gaza Strip. A November 2005 PA-Israeli agreement authorized the reopening of the Rafah border crossing between the Gaza Strip and Egypt under joint PA and Egyptian control. In January 2006, the Islamic Resistance Movement, HAMAS, won control of the Palestinian Legislative Council (PLC). The international community refused to accept the HAMAS-led government because it did not recognize Israel, would not renounce violence, and refused to honor previous peace agreements between Israel and the PA. HAMAS took control of the PA government in March 2006, but President ABBAS had little success negotiating with HAMAS to present a political platform acceptable to the international community so as to lift economic sanctions on Palestinians. The PLC was unable to convene throughout most of 2006 as a result of Israel's detention of many HAMAS PLC members and Israeli-imposed travel restrictions on other PLC members. Violent clashes took place between Fatah and HAMAS supporters in the Gaza Strip in 2006 and early 2007, resulting in numerous Palestinian deaths and injuries. ABBAS and HAMAS Political Bureau Chief MISHAL in February 2007 signed the Mecca Agreement in Saudi Arabia that resulted in the formation of a Palestinian National Unity Government (NUG) headed by HAMAS member Ismail HANIYA. However, fighting continued in the Gaza Strip, and in June, HAMAS militants succeeded in a violent takeover of all military and governmental institutions in the Gaza Strip. ABBAS dismissed the NUG and through a series of presidential decrees formed a PA government in the West Bank led by independent Salam FAYYAD. HAMAS rejected the NUG's dismissal and has called for resuming talks with Fatah, but ABBAS has ruled out negotiations until HAMAS agrees to a return of PA control over the Gaza Strip and recognizes the FAYYAD-led government. FAYYAD and his PA government initiated a series of security and economic reforms to improve conditions in the West Bank. ABBAS participated in talks with Israel's Prime Minister OLMERT and secured the release of some Palestinian prisoners and previously withheld customs revenue. During a November 2007 international meeting in Annapolis Maryland, ABBAS and OLMERT agreed to resume peace negotiations with the goal of reaching a final peace settlement by the end of 2008. The Israel-PLO Declaration of Principles on Interim Self-Government Arrangements (the DOP), signed in Washington in September 1993, provided for a transitional period of Palestinian interim self-government in the Gaza Strip and the West Bank. A transfer of authority to the Palestinian Authority (PA) for the Gaza Strip and Jericho took place pursuant to the Israel-PLO 4 May 1994 Cairo Agreement on the Gaza Strip and the Jericho Area and, in additional areas of the West Bank, pursuant to the Israel-PLO 28 September 1995 Interim Agreement, the Israel-PLO 15 January 1997 Protocol Concerning Redeployment in Hebron, the Israel-PLO 23 October 1998 Wye River Memorandum, and the 4 September 1999 Sharm el-Sheikh Agreement. Direct negotiations to determine the permanent status of Gaza and the West Bank began in September 1999 after a three-year hiatus, but were derailed by a second intifadah that broke out a year later. In April 2003, the Quartet (US, EU, UN, and Russia) presented a roadmap to a final settlement of the conflict by 2005 based on reciprocal steps by the two parties leading to two states, Israel and a democratic Palestine. The proposed date for a permanent status agreement has been postponed indefinitely due to violence and accusations that both sides have not followed through on their commitments. Following Palestinian leader Yasir ARAFAT's death in late 2004, Mahmud ABBAS was elected PA president in January 2005. A month later, Israel and the PA agreed to the Sharm el-Sheikh Commitments in an effort to move the peace process forward. In September 2005, Israel withdrew all its settlers and soldiers and dismantled its military facilities in the Gaza Strip and four northern West Bank settlements. Nonetheless, Israel controls maritime, airspace, and most access to the Gaza Strip. A November 2005 PA-Israeli agreement authorized the reopening of the Rafah border crossing between the Gaza Strip and Egypt under joint PA and Egyptian control. In January 2006, the Islamic Resistance Movement, HAMAS, won control of the Palestinian Legislative Council (PLC). The international community has refused to accept the HAMAS-led government because it does not recognize Israel, will not renounce violence, and refuses to honor previous peace agreements between Israel and the PA. Since March 2006, President ABBAS has had little success negotiating with HAMAS to present a political platform acceptable to the international community so as to lift the economic siege on Palestinians. The PLC was unable to convene in late 2006 as a result of Israel's detention of many HAMAS PLC members and Israeli-imposed travel restrictions on other PLC members.
Budget revenues: $1.149 billion


expenditures: $2.31 billion


note: includes Gaza Strip (2006)
revenues: $1.23 billion


expenditures: $1.64 billion (2005)
Economic aid - recipient $1.4 billion; (includes Gaza Strip) (2006 est.) $1.102 billion; (includes Gaza Strip) (2005)
Economy - overview The West Bank - the larger of the two areas comprising the Palestinian Authority (PA) - has experienced a general decline in economic conditions since the second intifada began in September 2000. The downturn has been largely a result of Israeli closure policies - the imposition of closures and access restrictions in response to security concerns in Israel - which disrupted labor and trading relationships. In 2001, and even more severely in 2002, Israeli military measures in PA areas resulted in the destruction of capital, the disruption of administrative structures, and widespread business closures. International aid of at least $1.14 billion to the West Bank and Gaza Strip in 2004 prevented the complete collapse of the economy and allowed some reforms in the government's financial operations. In 2005, high unemployment and limited trade opportunities - due to continued closures both within the West Bank and externally - stymied growth. Israel's and the international community's financial embargo of the PA when HAMAS ran the PA during March 2006 - June 2007 has interrupted the provision of PA social services and the payment of PA salaries. Since June the Fayyad government in the West Bank has restarted salary payments and the provision of services but would be unable to operate absent high levels of international assistance. The West Bank - the larger of the two areas under the Palestinian Authority (PA) - has experienced a general decline in economic conditions since the second intifadah began in September 2000. The downturn has been largely the result of Israeli closure policies - the imposition of border closures in response to security incidents in Israel - which disrupted labor and trading relationships. In 2001, and even more severely in 2002, Israeli military measures in PA areas resulted in the destruction of capital, the disruption of administrative structures, and widespread business closures. International aid of at least $1.14 billion to the West Bank and Gaza Strip in 2004 prevented the complete collapse of the economy and allowed some reforms in the government's financial operations. In 2005, high unemployment and limited trade opportunities - due to continued closures both within the West Bank and externally - stymied growth. Israel's and the international community's financial embargo of the PA since HAMAS took office in March 2006 has interrupted the provision of PA social services and the payment of PA salaries.
Exchange rates new Israeli shekels per US dollar - 4.14 (2007), 4.4565 (2006), 4.4877 (2005), 4.482 (2004), 4.5541 (2003) new Israeli shekels per US dollar - 4.4565 (2006), 4.4877 (2005), 4.482 (2004), 4.5541 (2003), 4.7378 (2002)
GDP - composition by sector agriculture: 8%


industry: 13%


services: 79% (includes Gaza Strip) (2006 est.)
agriculture: 8%


industry: 18.2%


services: 73.9% (includes Gaza Strip) (2005 est.)
GDP - real growth rate -8% (includes Gaza Strip) (2006 est.) 4.9% (includes Gaza Strip) (2005 est.)
Inflation rate (consumer prices) 3.6% (includes Gaza Strip) (2006) 2.9% (includes Gaza Strip) (2005)
Labor force 605,000 (2006) 568,000 (2005)
Labor force - by occupation agriculture: 18%


industry: 15%


services: 67% (2006)
agriculture: 16%


industry: 29%


services: 55% (2005)
Population below poverty line 46% (2007 est.) 45.7% (2005)
Radio broadcast stations AM 0, FM 25, shortwave 0 (2008) AM 0, FM 8, shortwave 0 (2005)
Telephone system general assessment: NA


domestic: Israeli company BEZEK and the Palestinian company PALTEL are responsible for fixed line services; the Palestinian JAWAL company provides cellular services


international: country code - 970 (2004)
general assessment: NA


domestic: Israeli company BEZEK and the Palestinian company PALTEL are responsible for fixed line services in the Gaza Strip; the Palestinian JAWAL company provides cellular services


international: country code - 970 (2004)
Television broadcast stations 30 (2008) 8 (2005)
Unemployment rate 18.6% (2006) 20.3% (includes Gaza Strip) (2005)
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